Defined Benefit Advice Assessment Tool (DBAAT)

The DBAAT was updated in June 2023 to include Handbook rules and guidance made since 2020. It includes a new section for the assessment of abridged advice and contingent charging.

When completing the template, an assessor should ensure that the information they enter, including values, notes, additional comments, rationale and evidence, is sufficiently detailed for a third-party assessor to: 

• gain an accurate and complete overview of the relevant evidence on the client file 
• form a view without the need to refer to the relevant evidence as to whether the firm has collected the necessary information to assess suitability and, where applicable, complied with the suitability requirements 

Yes in this instance you should do 1 DBAAT for each period.

You cannot assess advice as suitable if there is a Material Information Gap. You can only conclude that advice is unsuitable. This is because you do not have the necessary information to assess suitability. You can find more information on the process in section 1 of the DBAAT instructions which explain how to fill in the Information Tab of the DBAAT. 

The Defined Benefit Advice Assessment Tool (DBAAT) was commissioned by internal committee in Summer 2018. Its objective was to support reviewers making consistent judgements on the suitability of Defined Benefit (DB) pension transfer advice, and to capture better information on pension transfer advice to help our supervision of and feedback to firms.  

It was built internally using policy, supervisory, enforcement, legal and actuarial expertise and advice. It was rolled out for use in early 2019 and published on our website for firms in January 2021. 

Before commissioning the DBAAT, we used the Investment Advice Assessment Tool (IAAT) to assess the suitability of all pension and investment advice, including advice on DB pension transfers. Since launching the DBAAT, the IAAT continues to be used for all non-DB transfer pension advice and investment advice. 

When we published the DBAAT in January 2021 we provided an instruction guide for assessors. We also created 9 short videos to help individuals understand the key points of the DBAAT and how to approach an assessment. 

For internal purposes we developed a 2-day training workshop for all users of the DBAAT. 

• training pack 
• example case study (this case study is fictitious to facilitate training and does not contain details of a living individual) 

When we published the DBAAT in January 2021, it was a tool which firms could choose to use when assessing their own DB transfer advice.  Use of the DBAAT is not a requirement, and there are no minimum qualification levels for users. 

Where we undertake reviews of DB transfer advice as part of our supervision and enforcement investigations of firms, we use the DBAAT. Our assessors, and those responsible for quality assurance, must hold the relevant qualifications to be a Pension Transfer Specialist (PTS). This includes an appropriate advisory level 4 qualification.  

Where we engage third parties to undertake reviews of DB pension transfer advice on our behalf, we expect the same qualification standard to be applied.